Questcor Buys Drug from Novartis, Shares Surge

Anaheim-based Questcor Pharmaceuticals Inc.’s shares shot up today after it said it would pay at least $135 million to Novartis AG for an inflammatory and autoimmune disease drug.

Questcor’s shares rose 22% in midday New York trading to a market value of about $2.6 billion.

The company will pay $60 million upfront for Synacthen and Synacthen Depot with additional payments of at least $75 million in future years. The drugs are approved in 40 international markets for various conditions, including ulcerative colitis; they aren’t yet approved in the U.S.